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on Accounting and Auditing |
| By: | Magni, Carlo Alberto |
| Abstract: | This paper presents a new way of measuring residual income, originally introduced by Magni (2000a, 2000b, 2003). Contrary to the standard residual income, the capital charge is equal to the capital lost by investors. The lost capital may be viewed as (a) the foregone capital, (b) the capital implicitly infused into the business, (c) the outstanding capital of a shadow project, (d) the claimholders' credit. Relations of the lost capital with book values and market values are studied, as well as relations of the lost-capital residual income with the classical standard paradigm; many appealing properties are derived, among which a property of earnings aggregation. Different concepts and results, provided by different authors in such different fields as economic theory, management accounting and corporate finance, are considered: O'Hanlon and Peasnell's (2002) unrecovered capital and Excess Value Created; Ohlson's (2005) Abnormal Earnings Growth; O'Byrne's (1997) EVA improvement; Miller and Modigliani's (1961) investment opportunities approach to valuation; Keynes's (1936) user cost; Drukarczyk and Schueler's (2000) Net Economic Income, Fernandez's (2002) Created Shareholder Value, Anthony's (1975) profit. They are all conveniently reinterpreted within the theoretical domain of the lost-capital paradigm and conjoined in a unified view. The results found make this new theoretical approach a good candidate for firm valuation, incentive compensation, capital budgeting decision-making |
| Keywords: | Corporate finance, management accounting, valuation, residual income, value creation, incentive compensation, residual income, market value, outstanding capital, lost capital, net present value, book value |
| JEL: | G11 G31 D40 M52 G30 M40 D46 M41 G12 G0 M21 |
| Date: | 2007–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7335&r=acc |
| By: | Dutta, Probal; Bose, Sudipta |
| Abstract: | This research paper investigates the utilization of the Internet for communicating corporate information by the listed companies of Bangladesh.The sample for the study consists of 268 companies listed on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Corporate websites of the sample companies were browsed by using a standard web browser for collecting data relating to corporate reporting on the Internet. The study shows that web-based corporate reporting in Bangladesh is still in its infancy. Only 38.81 percent of 268 companies have a web. A scoring scheme has been developed to measure the level of on-line corporate reporting. A wide variation in the level of on-line corporate reporting across 15 sectors has been found. The highest-ranking sector was the Banking, Leasing & Finance sector. This paper adds to the existing body of literature on on-line corporate reporting studies by exploring on-line corporate reporting practices of Bangladesh. |
| Keywords: | Corporate Reporting; Corporate Websites; Content Analysis; Listed Companies; Internet; Bangladesh. |
| JEL: | M14 M41 M1 M40 M4 M49 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7915&r=acc |
| By: | Ester Oliveras; David Castillo |
| Abstract: | As companies and shareholders begin to note the potential repercussions of intangible assets upon business results, the inability of the traditional financial statement model to reflect these new ways of creating business value has become evident. Companies have widely adopted new management tools, covering in this way the inability of the traditional financial statement model to reflect these new ways of creating business value. However, there are few prior studies measuring on a quantifiable manner the level of productivity unexplained in the financial statements. In this study, we measure the effect of intangible assets on productivity using data from Spanish firms selected randomly by size and sector over a ten-year period, from 1995 to 2004. Through a sample of more than 10,000 Spanish firms we analyse to what extent labour productivity can be explained by physical capital deepening, by quantified intangible capital deepening and by firm’s economic efficiency (or total factor productivity –PTF). Our results confirm the hypothesis that PTF weigh has increased during the period studied, especially on those firms that have experienced a significant raise in quantified intangible capital, evidencing that there are some important complementary effects between capital investment and intangible resources in the explanation of productivity growth. These results have significant differences considering economic sector and firm’s dimension. |
| Keywords: | Intangibles, Accounting, Spain |
| JEL: | M41 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1080&r=acc |
| By: | Dutta, Probal; Bose, Sudipta |
| Abstract: | In today’s corporate world, board diversity is a much talked-about topic and gender diversity is an important aspect of board diversity. Gender diversity refers to the presence of women on corporate boards of directors. In this paper, an effort has been made to examine whether an association exists between the financial performance of commercial banks in Bangladesh and presence of women on the boards of directors of these banks and in order to examine the existence of this association, a non-parametric test, namely Kruskal-Wallis H test has been conducted. But the test has yielded conflicting results at different significance levels. |
| Keywords: | Gender diversity; Board of Directors; Financial Performance and Commercial Banks. |
| JEL: | M14 M0 M41 M1 M12 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7916&r=acc |
| By: | Richard Herd; Willi Leibfritz |
| Abstract: | This paper examines varies areas of India´s fiscal policy, in particular fiscal discipline, the structure of government spending, the tax system and fiscal federalism. It describes reforms over the past decades which, as part of the overall economic reform agenda, helped lifting the Indian economy to a higher growth path. It also discusses where further reforms are desirable to further reduce economic distortions and improve the provision of public services. It finds that after high fiscal deficits have often been recorded during the past two decades, after the adoption of the Fiscal Responsibility and Budget Management Act in 2003, fiscal discipline has significantly improved. As to government spending, it argues that, given the large share which is used to subsidise commercial undertakings, agriculture and food distribution, there is much room to improve the quality of spending and to target it better to improving infrastructure and reducing poverty. It describes the tax system which has undergone major reforms since the early 1990s. Nonetheless, there are still many exemptions and loopholes which suggest that a broadening of the tax bases would allow further reductions in tax rates and make the system simpler, fairer and more efficient. The paper also suggests that reforms of indirect taxes should focus on creating a common market within India so that goods can move between states without border controls. Finally, on fiscal federalism it finds that India's federal structure has led to a well-developed system of tax-sharing and transfers, both through constitutionally empowered bodies and delivered through the annual budget. While overall, India´s fiscal federalism has worked well moving resources towards the poorest states, it has become very complex and there are still some features which weaken fiscal discipline of the states. Furthermore, a major drawback is the lack of an effective local government system, most notably in rural areas and strengthening the local level would be important for improving accountability and responsiveness to citizens’ needs as three-quarters of the population live in states with over 50 million inhabitants. <P>La politique budgétaire en Inde : réformes passées et challenges pour l’avenir <BR>Nous examinons dans ce document différents aspects de la politique budgétaire indienne, notamment la discipline budgétaire, la structure des dépenses publiques, le système fiscal et le fédéralisme budgétaire. Nous décrivons les réformes mises en oeuvre au cours des dernières décennies, qui, dans le cadre du programme global de réformes économiques, ont contribué à rehausser la trajectoire de croissance de l'économie indienne. Nous nous demandons également si de nouvelles réformes sont souhaitables pour réduire encore certaines distorsions économiques, et améliorer la prestation des services publics. Nous parvenons à la conclusion qu'après deux décennies fréquemment marquées par de volumineux déficits budgétaires, la discipline budgétaire s'est sensiblement améliorée à la suite de l'adoption de la Loi de responsabilité et de gestion budgétaires de 2003. S'agissant des dépenses publiques, nous estimons que, dans la mesure où une grande partie des fonds est utilisée pour subventionner des entreprises commerciales, l'agriculture et la distribution de produits alimentaires, les autorités disposent de marges de manoeuvre considérables pour améliorer la qualité des dépenses et mieux les cibler, en vue d'améliorer les infrastructures et de faire reculer la pauvreté. Nous décrivons également le système fiscal, qui a fait l'objet de réformes de fond depuis le début des années 90. Il n'en demeure pas moins caractérisé par un grand nombre d'exonérations et de lacunes, ce qui laisse à penser qu'un élargissement de l'assiette des impôts permettrait de réduire davantage leur taux, tout en rendant le système fiscal plus simple, plus équitable et plus efficient. Nous estimons par ailleurs que les réformes des impôts indirects devraient être axées sur la création d'un marché commun en Inde, de manière que les biens puissent circuler entre les États de l'Union sans contrôle à leurs frontières. Enfin, s'agissant du fédéralisme budgétaire, nous parvenons à la conclusion que la structure fédérale de l'Inde a débouché sur un système étoffé de partage des recettes fiscales et de transferts, reposant sur des organismes constitutionnels ou s'inscrivant dans le cadre du budget annuel. Globalement, le fédéralisme budgétaire indien a bien fonctionné et permis de redistribuer des ressources aux États les plus démunis, mais il est devenu très complexe et présente encore des caractéristiques qui nuisent à la discipline budgétaire des États. En outre, un de ses inconvénients majeurs réside dans l'absence de système d'administration locale efficace, en particulier dans les zones rurales. À cet égard, il serait important de renforcer le niveau local d'administration pour responsabiliser davantage les autorités et les rendre plus attentives aux besoins des citoyens, dans la mesure où trois quarts de la population vivent dans des États de plus de 50 millions d'habitants. |
| Keywords: | taxation, fiscalité, fiscal policy, politique budgétaire, dépenses publiques, fiscal federalism, fédéralisme budgétaire, India, government spending |
| JEL: | H1 H2 H5 H6 H7 |
| Date: | 2008–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:595-en&r=acc |